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Strategist: Confidence In Fed On The Rise

The ISM index fell to 50.9 from 52.3 in February. How are bonds reacting to Monday's lukewarm ISM number? Kevin Ferry, chief market strategist at Cronus Futures Management joined Liz Claman on “Morning Call.”

Speaking from the Chicago Mercantile Exchange, Ferry said, “As the inflation news continues to disappear, the market’s respect for the Fed’s ability to fix it goes up, and that is exactly what’s happening.” He added, “Although there was not a dynamic response, people’s confidence in the Fed and the confidence that the inflation picture will improve remains intact.”

In the future, Ferry believes the Fed’s performance may mean less: “Going forward, the stock market’s direction will be a major driver and not just the economic news or the Fed’s intentions. The market will be a big factor.”